US 10-year Treasury yield hits 19-year high on strong manufacturing data
The surge came as more hot economic readings boosted expectations of further interest rate hikes.
On Wednesday, the 10-year U.S. Treasury yield surged to 5.058%, its highest level since July 2007, signaling increased pressure on equities. The 2-year Treasury yield climbed 8 basis points to 4.464%, while the 30-year yield rose more than 4 basis points to 5.347%, according to CNBC. Data showing strong services and manufacturing sectors raised concerns about the Federal Reserve potentially raising interest rates further.
This trend was observed across maturities, with European government bonds also experiencing a sell-off. The 5% yield level is closely monitored by investors due to its impact on long-term borrowing costs, particularly affecting growth and technology stocks. The S&P Global services PMI rose to 58.7 in September, reaching its highest in nearly five years, while the manufacturing PMI climbed to 56.7, its strongest level in over four years.
The probability of another 25-basis-point rate hike in October, as indicated by the CME Group’s FedWatch tool, increased to 64%, up from 55% the previous day.
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Also reported by 1 other outlet
- 10-yr US Treasury yield tops 5%, highest since 2007 economictimes.indiatimes.com
